Tag: efficiency

Invest your house EMI in equity markets

Earlier I wrote a post to convince you that you should buy a house against renting, Today let’s build a case of buying house on EMIs vs investing equated monthly investment (EMI ) in capital markets

Base case

Cost of house – INR 60,00,000

Down payment – INR 12,00,000

Term – 15 years

Rate of interest – A quick search would tell you ~10% floating rate is the going rate , See below snapshot from www.bankbazaar.com

house-1

Typically as an economy scales up the interest rate goes down, See an example of South Korea , A nation which has moved from being a developing nation to a developed nation

house-2

Therefore for our base case example we can say that consumer is likely to pay a lower EMI in future however to be conservative I will assume EMI to be constant

EMI – INR 51,463 /month or INR 6,17,564 / Year

To complete my calculation I need to make few more assumptions , Rent yields let take a look at what are rent yields across the world now

house-3

In 15 years India as an economy should be closer to China / Singapore in real terms so I can only make an educated … Read the rest

Create an Investing checklist

Invest in creating an Investing checklist as it can save you from making fatal investment mistakes in life

Charlie munger said,

“You need a different checklist and different mental models for different companies. I can never make
it easy by saying, ‘Here are three things.’ You have to derive it yourself to ingrain it in your head for the rest of your life

Checklists in aviation and medicine aim to eliminate errors completely. They are critical since they deal with life and death situations—a minor mistake in a flight may lead to a fatal crash, In investing checklist slows down investing process thus taking impulse out of decision making. See how Harvard have developed this checklist for CEOs for big corporate decisions

Daniel Kaheman wrote

Form a checklist of criteria to consider before making a strategic decision. This can help to protect against overconfidence. For example, you might want to know the quality of the information given, whether or not there is a strong possibility of “group think” influencing this information, have any influential team members had a chance to persuade other team members, and also whether the chief decision-maker already has a strong stance on this issue. These

… Read the rest

Make this little changes at your workplace

WordItOut-word-cloud-327657Are you the one who has to withstand daily grind of attending meetings, sending emails, managing bosses, organizing diaries and paperwork  and overtime?

Are you in search of ideas to improve your workplace effectiveness?

If the answer to any of the above is yes – Read on

The work component is very crucial component of our everyday life with almost one-third or more of our time spent in that component, add to that the pressure to excel and be the best in work.  Here are few small changes that we can embrace

 

1. Manage your energy not your time – Most of us respond to increasing demands in the workplace by putting in extended hours, which inescapably take a toll on us, remember time is definite however energy can be methodically expanded and habitually renewed.  If managed well expanded capacity means we would could do more in less time. Now how do we manage and expand energy?

Tony Schwartz in his best-selling book The power of full engagement recommends managing energy by establishing specific rituals – it could be simple rituals like going early to bed to get up early for exercise or scheduling ‘recover time’ in your office … Read the rest